Shop for a Loan

I came across this very informative link from the Federal Reserve on shopping for a loan:

Shopping around for a home loan or mortgage will help you to get the best financing deal. A mortgage--whether it’s a home purchase, a refinancing, or a home equity loan--is a product, just like a car, so the price and terms may be negotiable. You’ll want to compare all the costs involved in obtaining a mortgage. Shopping, comparing, and negotiating may save you thousands of dollars.

Here is the full link

Magnolia Glen Edgewater: Two Bedroom Condo

Welcome to quality living in the Edgewater community.


Chicago's newest development to be offered for sale in the Edgewater neighborhood.




This spacious renovated Edgewater four-unit condo development has integrated contemporary features while maintaining the original vintage charm. Building features three, 3 bedroom 2 bathroom condos and one, 2 bedroom 2 bathroom residence.




The two bedroom garden residence has been completely renovated top to bottom. It includes a spacious floor plan with a sunny living room and sunroom adjacent to the beautifully appointed kitchen which includes all new stainless steel appliances, granite countertops, undermount stainless steel sinks and 42” maple cabinets. There is also an eat-in island that features a built-in wine rack.

The large master suite includes a walk-in closet and large master bathroom with nicely appointed fixtures including a whirlpool tub, granite tops and a Grohe shower head. This unit has its own new heating and air conditioning system, full-size laundry in-unit, wired security system, a limited 3 year warranty and a large secured storage room.

Located only two blocks from the red line el and four blocks to the lake and close to restaurants and shops in Edgewater and Andersonville and much more. We welcome you to view the Magnolia Glen Condominiums and see if they meet or exceed your requirements. We believe they will.


2BR 2 BA Starting at $269,000


3BR 2BA Starting at $349,000




Go here for development intro page (dsl) or visit our website at http://www.REMEMBERJIM.com and click on the featured property or download a pdf of the 3BR floor plan




These properties are being exclusively marketed by Jim Gramata, a licensed broker associate with Keller Williams Lincoln Park Realty. If you would like to make an appointment to see a residence in this development call us at 888-877-8705 ext 2035.

Magnolia Glen Edgewater Three Bedroom Condos

Welcome to quality living in the Edgewater community.


Chicago's newest development to be offered for sale in the Edgewater neighborhood.




This spacious renovated Edgewater four-unit condo development has integrated contemporary features while maintaining the original vintage charm. Building features three, 3 bedroom 2 bathroom condos and one, 2 bedroom 2 bathroom residence.




The three bedroom condominiums includes a spacious, open floor plan with a large living room and adjoining sunroom with excellent exposure to western sunlight. The Great Room includes a family room and dining area that are adjacent to the beautifully appointed kitchen which includes all new stainless steel appliances, granite countertops and undermount stainless steel sinks with 42” maple cabinets. There is also an eat-in island that features a built-in wine rack. As if that weren’t enough, the design includes a separate breakfast area off of the kitchen for informal meals or an office area.




Some interior features include restored stained glass windows, built in vintage cabinetry, crown moulding, recessed lighting and hardwood flooring. In addition to the three generously sized bedrooms are two completely updated full bathrooms with nicely appointed fixtures and finishes including Grohe shower heads. Each unit has its own new heating and air conditioning system, a security system and a limited 3 year warranty. Units also include a large secured storage room. Deeded parking is available.




Only two blocks from the red line el and four blocks to the lake and close to restaurants & shops in Edgewater & Andersonville. We welcome you to view the Magnolia Glen Condominiums and see if they meet or exceed your requirements.




We believe they will.


2BR 2 BA Starting at $269,000


3BR 2BA Starting at $349,000




Go here for development intro page (dsl) or visit our website at http://www.REMEMBERJIM.com and click on the featured property or download a pdf of the 3BR floor plan




These properties are being exclusively marketed by Jim Gramata, a licensed broker associate with Keller Williams Lincoln Park Realty. If you would like to make an appointment to see a residence in this development call us at 888-877-8705 ext 2035.

Edgewater BUZZ: New Condo Development

Chicago HomeBUZZ: Magnolia Glen Condos about to hit the market.

There is a four unit development I am about to exclusively market that has not even been made public (except for here on the BUZZ!).

Read the description below taken from the flyers we are preparing or call 888-877-8705 ext 2029 (2BR) or ext 2039 (3BR) for a free recorded description of the property (beware I will get your phone number!) Or simpy visit our website at http://www.REMEMBERJIM.com and click on the photo on the left. There are downloads of floor plans and lots more coming soon!!

Video podcasts, flyers, photo gallery, etc

These are going to be some really nice reidences in a great neighborhood. Call me for to make an appointment or pass this post along to your friends (they'll love that you knew the BUZZ FIRST!)


Welcome to quality living in the Edgewater community.

This spacious renovated Edgewater four-unit condo development has integrated contemporary features while maintaining the original vintage charm. Building features three, 3 bedroom 2 bathroom condos and one, 2 bedroom 2 bathroom residence.

The three bedroom condominiums includes a spacious, open floor plan with a large living room and adjoining sunroom with excellent exposure to western sunlight. The Great Room includes a family room and dining area that are adjacent to the beautifully appointed kitchen which includes all new stainless steel appliances, granite countertops and undermount stainless steel sinks with 42” maple cabinets. There is also an eat-in island that features a built-in wine rack. As if that weren’t enough, the design includes a separate breakfast area off of the kitchen for informal meals or an office area.
Some interior features include restored stained glass windows, built in vintage cabinetry, crown moulding, recessed lighting and hardwood flooring. In addition to the three generously sized bedrooms are two completely updated full bathrooms with nicely appointed fixtures and finishes including Grohe shower heads. Each unit has its own new heating and air conditioning system, a security system and a limited 3 year warranty. Units also include a large secured storage room. Deeded parking is available.

Only two blocks from the red line el and four blocks to the lake and close to restaurants & shops in Edgewater & Andersonville. We welcome you to view the Magnolia Glen Condominiums and see if they meet or exceed your requirements. We believe they will.

Starting at $349,000
Property characteristics
3 Bedrooms, 2 Bathrooms
Large, Sunny Living & Sun Rooms
Renovated eat-in Kitchen
Large, open Great Room
Stainless Steel appliances
Built-in Wine Rack
Hardwood flooring throughout
In-unit oversized laundry
Restored stained glass windows
Large secured storage room
Deeded parking available for $25,000
Red line “El” Stop two blocks
Four blocks to Lake Michigan
Close to downtown Andersonville
3 Year Home Warranty
Security system

Visit http://www.REMEMBERJIM.com and click on featured property.

Economy Grows in First Quarter

Emerging from a year-end rut, the economy dashed ahead in the opening quarter of this year at a 5.3 percent pace, the fastest in 2 1/2 years.

The new snapshot showed gross domestic product was even stronger during the January-to-March period than the 4.8 percent annual rate first estimated a month ago, the Commerce Department reported Thursday.

Gross domestic product measures the value of all goods and services produced within the United States and is considered the best barometer of the country's economic fitness.

The upgraded reading on GDP, based on more complete information, mostly reflected stronger U.S. exports and better inventory building by businesses.

Economists, however, were predicting an even bigger upgrade to the first-quarter reading. Before the release of the report they were forecasting economic growth to clock in at a 5.8 percent pace. Even though the revised figure fell short of that, it nonetheless made clear that the economy had snapped out of its end-of-year lull.

In the final quarter of 2005, the economy grew at a feeble 1.7 percent pace. Fallout from the Gulf Coast hurricanes, including high energy prices, prompted people and companies to tighten their belts.

Consumers and businesses regained their appetite for spending and investing in the first quarter, a major factor underpinning the brisk pace of growth logged for the overall economy.

Their appetite, though, was a tad less hearty than initially estimated.

For a full look at this article click here

Economy Dashes Ahead at 5.3 Percent Pace

By JEANNINE AVERSA
AP Economics Writer
Published May 25, 2006, 7:38 AM CDT

Appraising the True Market Value

Q: I tried to sell a house for the appraised price and was unable to sell at that price. I understand that property will not sell when it is priced too high but the offers I received were $5,000 to $8,000 less than the appraisal.

I was under the impression that if I advertised the property for the appraised price, it would move quickly. I told one real estate agent when she made me an offer from a client that I was going to have the house appraised again and that I would provide the appraised price to the potential buyer so he could adjust his bid.

The agent didn't go for that at all. Can you give me some suggestions as to what I did wrong? When I couldn't sell the house, I finally rented it.

A: I think you made a few basic mistakes. First, the appraised value is not necessarily the same thing as the market value.

The appraised value of the home is what an appraiser thinks the home is worth based on the sales of other similar homes in the area. The market value is what someone will actually pay for the house.

In your case, either because of the condition or location of the home, the market is telling you that your home isn't worth what the appraiser thinks it should be worth--it's worth $5,000 to $8,000 less.

Getting a new appraisal doesn't change what someone will pay for the home. You'd be better off buying some cans of white paint and repainting the interior of the property. Then, you might get more money for it.

Renting the house is fine. Eventually, prices will rise in your neighborhood and you'll get your price, but not today. And only you can decide if waiting for prices to rise in order to get the extra $5,000 to $8,000 is worthwhile.

Stream of low offers confuses home seller
Thursday, May 25, 2006

By Ilyce R. Glink
Inman News

Just Breathe

NAR: housing market to experience its third best year in 2006. NAR Chief Economist David Lereah says: "Coming off a prolonged period of record sales, housing is taking something of a breather this year. Even so, interest rates remain historically low, we've added about 2 million jobs over the last 12 months, and the economy continues to grow. That will sustain healthy levels of home sales in 2006, but they'll stay below the peaks experienced during the last two years."

For the full article click here

Good Cop, Bad Cop

The long boom in the real estate market appears to be over. Higher interest rates and soaring prices have begun to bring some local markets to a halt. In places like Illinois, where prices haven’t risen dramatically, the adjustment will be mild. The real uncertainty is what happens next. Will the economy begin to steam along, or will the combination of international tensions and oil prices cause it to stall as well? Closer to home, what will the next revolution of the real estate world bring for brokers and agents? Read on for answers to these and other penetrating questions.

The good news and bad news about the economy

Economic forecasting is a less than exact science. In fact, it's downright primitive. When you hear a pundit giving you a numerical forecast in grave tones, understand that it is wrong. Not intentionally wrong, but rather as mistake made by someone who thinks he knows more than he actually does. It's better for you to understand the forces that will shape the future of the economy and then apply those forces to your own business and your own market. So, here goes.

Good news

First, and foremost, the demographic structure of the United States is ideal for preserving a steadily growing economy and a strong real estate market. The baby boom, which has caused so much of the economic and social history of the United States over the past half century, is still in place and still productive. The largest single age group of the boomers is 49. This means that the 75 million or so people born between 1946 and 1964 are clustered in a time of life when they are at their career peaks—and when they are moving into the best home they will ever inhabit. Their productivity keeps a high floor under the economy, ensuring that what recessions occur are most likely to be mild and short.

Second, the Federal Reserve has managed the economy in an effective fashion. While former Fed Chairman Mr. Greenspan was not right all the time, he was right about where monetary policy should be far more often than he was wrong. The result has been a low interest rate climate that has fostered economic activity and reduced the cost of homeownership.

Finally, the world is flat. The term used heavily by columnist and author Thomas Friedman capsulizes the integration of the world's economy. The labor force available to American manufacturers is worldwide as is their market. The result is a greater availability of goods at lower prices than has ever before faced the American consumer.

Bad news

With the good, there come some wild cards. Some of this is bad, but much is just a yellow flag that needs to be watched to see if it turns red. First, we have a new Fed chairman. Ben Bernanke comes to the job with the confidence of the financial community, just about the only requirement in the job description. But he's not Alan Greenspan, and we don't know yet whether his models have the same sure touch and feel for what's needed that Mr. Greenspan's street smarts had. This will develop over the next year or so, so keep watching the Fed.

Second, we are borrowing a trillion dollars a year to cover our trade and budget deficits. So far, it hasn't hurt us much as the rest of the world seems to want our debt at pretty reasonable rates. But it leaves us vulnerable to a long-term rate hike, and to being hamstrung in dealing with issues that concern our creditors. We need to get the federal budget under control at the least, even if we can erase the trade deficit.

Finally, our addiction to oil puts us at the mercy of an unsavory bunch of characters. It seems that every country that has significant oil reserves is either untrustworthy (Russia, Saudi Arabia), unstable (Nigeria, Iraq) or is ruled by a tin horn dictator who hates us (Venezuela, Iran). The more we rely on foreign oil (now more than 50 percent of what we use), the more vulnerable we become. It's more than price, although that could have a draining effect on this economy. It's international politics as well.

That said, my opinion is that the good news prevails and this economy proceeds decently (although far below potential) through 2006 and 2007. Growth should be around three percent with inflation edging up. Long-term interest rates will be up about three-quarters of a point by year's end, and the employment picture good, but mixed.

The real estate market

We've had a decade of strong real estate sales. Now rising prices and interest rates will slow down in 2006. Even if the pessimists are right, though, and sales fall by 10 percent, this will still be better than any year of the 20th Century. The question facing the market, however, is whether this is the pause that refreshes or the fall of a skyrocket.

The answer will differ for different markets. The key will be employment. In those markets where the underlying economy is sound and growing with the national economy, the housing market will revive just as soon as prices adjust to the level of income. For others, the real estate market will stagnate and the price corrections will be harsh.

The issue facing agents and brokers is how to transition from an “order taker” market to one where actual work has to be done. With the rapid expansion of the number of REALTORS® over the past five years, most of the industry has little to no experience of anything but a growing market. Brokers need to invest more heavily in the tools and training their agents need to understand how to operate in a down market. Agents have to realize that it's not the end of the world.



By John Tuccillo, Ph.D. (Economist)
Illinois Association of Realtors

For-Sale-By-Tribune.com

(Crain's) Tribune Co. made good on plans to add to its Internet stable Monday and announced the purchase of a real estate Web site company.

Its Tribune Interactive subsidiary acquired ForSaleByOwner.com, a nine-year-old Internet company that caters to people selling their houses without the aid of a real estate agent.

The purchase comes as TribuneÂ’s Web sites bolster lackluster ad sales seen in the companyÂ’s publishing division. Internet revenues climbed 30% in the first quarter of the year thanks in large part to online help wanted and auto advertising. ForSaleByOwner could strengthen TribuneÂ’s online real estate business.

For a complete article: http://chicagobusiness.com/cgi-bin/news.pl?id=20707&bt=forsalebyowner&arc=n&searchType=all

Move.com

Move Inc., formerly Homestore, today officially launched Move.com, giving home buyers and renters access to homes for sale and houses and apartments for rent, as well as home-buying and moving resources.

Move.com is billing itself as a real estate search engine and has more than 3 million existing homes for sale from Realtor.com and millions more newly built homes and rentals from hundreds of sites all over the Web.

In addition to property listings, Move.com features tutorials on home buying and selling, home value reports, an affordability calculator, a neighborhood finder, school reports, and information on senior housing communities, among other things.

Move Inc. operates Move.com, Realtor.com, Moving.com, SeniorHousingNet, FactorBuiltHousing.com, Homeplans, Welcome Wagon, and Top Producer Systems.

Move shares (NASDAQ: MOVE) traded around $5.42 per share this morning, down 3.9 percent from Monday's closing price of $5.64.

City of Chicago "City Mortgage" Program

"City Mortgage" is back, aimed at Chicago buyers on a budget.Every tick up in
interest rates holds more families back from affording a home. Because of recent rate rises, the Chicago housing department is again sponsoring City Mortgage. A fixed-rate, 30-year loan at a competitive rate, the City Mortgage also provides up to 4 percent in closing costs for eligible borrowers.You'll have to fall under certain income levels, and buy a one- to four-unit home in Chicago under a certain price to qualify for the loan. The limits increase slightly for properties in "target" areas where the city wants to promote development.To get a City Mortgage, you have to apply through one of the participating lenders to be posted on the city Web site, http://www.cityofchicago.org/. (Click on Home & Property; next, click on For HomeBuyers; then Housing; and Financial Assistance on upper-left side.)

Lenders should start offering the City Mortgage this month (May '06), says Molly Sullivan, housing department spokeswoman.- Advantage: New research shows Chicago's dominance over the regional housing market is growing. Not only is the city attracting more buyers, but fewer owners are losing their homes to foreclosure.

For a complete look at this article written in the Chicago Tribune go here

Shifting Strategy

As we been posting for some time now, the market is shifting away from the seller's market we have been experiencing for several years and moving towards a buyers market. This balancing act does have a major impact on establishing a strategy whether you are buying or selling real estate.

Homeowners in recent history have taken the strategy to find their new home first and negotiate that contract THEN market and sell their home. IN the fast and frenzied market we are coming out of it usually meant a quick sale if marketing, price and condition were all good.

One drawback of that scenario was the uncertainty of final sale price, however, since it was such a strong market, the final price was usually close to the original asking price.

Well, times are changing (and as I've said I believe it will be beneficial to the real estata market). Homes are sitting on the market longer and it is more difficult to predict the market time.

Marketing and sales strategies become even more critical in this market when selling a home. The balancing act require more strategizing and patience when dealing with a shifting market.

In a seller's market, buyers usually face a lot of competition. They often need to bid over the asking price and waive contingencies to get an offer accepted. In a buyer's market, there are more sellers than buyers. Listings take longer to sell; buyers can afford to be choosy.

A balanced market is somewhere in between a seller's and a buyer's market. However, even in a balanced market, you'll find pockets of variability depending on supply and demand.

For example, in desirable neighborhoods where inventory is low, a balanced market might exhibit characteristics of a seller's market. However, this will only be the case for well-priced listings that are in prime condition, or priced-to-sell fixer-uppers that have a lot of upside potential.

In a hot seller's market, virtually everything sells. This is not the case in a more balanced market. Keep this in mind if you're thinking about selling your current home and buying a new one.

HOUSE HUNTING TIP: It's a great time to make this kind of move because interest rates are relatively low. However, if you intend to buy before selling, be aware that this is a riskier strategy for some homeowners than it was a year ago.

In a strong seller's market, the challenge is finding your next home. But, selling your existing home is often relatively easy. In a balanced market you will have an easier time finding a home, but it could take longer to sell. The other factor to consider is that it may be more difficult to predict ultimate sale price.

The real estate market is not static. Particularly in a transitional market, it can be stronger one month than it is the next. Unless you have ample funds at your disposal, you should factor this in to your home buying strategy.

One homeowner learned this lesson the hard way when they bought a new home in San Francisco before selling their existing Oakland, Calif., home. They made the move in 1994 when the real estate market was in transition. They bought their new San Francisco home when market activity was brisk.

Two months later when their Oakland home went on the market, the market softened enough to delay the sale a few months. The sellers reduced the asking price in order to hasten the sale. They ended up selling for less than they had budgeted for and had to sell stock in order to complete the transaction

If your funds are limited, a safer strategy is to put your home on the market before you buy your new home. You should be actively looking for your new home while you're waiting for your home to sell.

In markets where there are a lot of houses on the market, an offer that is made contingent on the sale of your existing home may be a workable. However, if you're trying to buy into a pocket of the market that is in high demand and where there aren't a lot of homes for sale, like the Upper Rockridge neighborhood in Oakland, a contingent sale offer may stand little chance of being successful even in a more balanced market.

Keep an open mind about your options. If you sell your current home before buying the new one, you'll know exactly how much money you have to work with. You don't have risk of coming up short of the funds you will need to make a financially prudent move.

THE CLOSING: You may have to make a move to an interim rental. But, that's better than racing to buy a home that may not work for you in a couple of years.

Trib Reports Old News

As I wrote in this Chicago HomeBUZZ blog back in November, December and again here in January, the market is shifting towards a buyers market.

It seems the Tribune posted an article on this topic today in the Sunday paper. As I said before, this is a good thing all around for the economy for the real estate market and to thin the field of real estate agents are were able to ride the wave of a hot market without having to have services strategies and market plans.

Here is a link to the Trib article if you're interested.

50 Years (Ways) to Lose Your Money

50 years to pay off a house? What do your instincts tell you about that? Oh, sure your monthly payment will be less, which means you can afford more house, but please! Fifty years!

Here is an article from Yahoo Finance on the subject and how some Californians are riding the wave...For the complete story click here

The Methuselah of mortgages has arrived: the 50-year home loan.
Think of it as a mortgage that has been supersized. Like that other supersizer, McDonald's, the massive mortgage was born in Southern California's San Bernardino County. Statewide Bancorp of Rancho Cucamonga began offering the loan in late March, to California residents. Advertisements have yielded a lot of phone calls and "quite a few applications," says Alex Diaz Jr., vice president of Statewide.

Half of first-time home buyers are 32 or older, according to the National Association of Realtors. If those buyers get 50-year mortgages and never refinance or make extra payments, they won't pay off their loans until they're well into their 80s. Would they be crazy to get loans that amortize or pay off the balance over 50 years instead of the standard 30 years? Not at all, Diaz says.

Getting a 50-year loan is a perfectly rational way to avoid an interest-only or payment-option adjustable-rate mortgage, he says. With an interest-only mortgage, the minimum monthly payment doesn't put any money toward principal. A payment-option ARM goes a step beyond that: In some circumstances, the minimum monthly payment doesn't even cover the interest accrued that month. You make a minimum payment at the beginning of the month, and four weeks later, you owe more than you owed before the payment. This condition is called negative amortization, or "going negative."

River North, South, East or West?

What's in a name? A lot! It's about public perception and the branding a developer wants to evoke when marketing a new development. Here is an article on the push to "create" a new neighborhood in the area just south of Congress to 18th street and from Canal to Clark. This "hot new neighborhood" --very hot but not so new-- has thousands of units in the works in the coming years and they are pushing to get a name that sticks and makes its image one which the developers can market around:

Here is a partial copy of the article written in Crain's magazine. For the full story go here

Realtors will tell you south Uptown is Buena Park and east Logan Square is actually West Bucktown. Now if some developers succeed, part of the South Loop could become River South.

Developers in one of the city's fastest-growing areas want to rename a large swath of the South Loop. It's an age-old exercise in real estate brand-building: slap a new name on a neighborhood to make it more appealing to buyers. Yet it often fails, even in a place like the South Loop, where an attempt to call the area SoLo in the 1990s drew mostly ridicule.

Just remeember, Bucktown is part of Logan Square, Andersonville is really in Edgewater and Ravenswood is really a part of Uptown....all according to National Census data (which is how the MLS is organized). So, it all depends upon who you're talking to and where you are talking.